How to Get a Loan in Udyog Aadhaar Scheme (Udyam Registration)
Small businesses and women entrepreneurs are the backbone of India’s economy. To empower them, the Government of India introduced Udyog Aadhaar, which is now replaced by Udyam Registration. This registration helps Micro, Small, and Medium Enterprises (MSMEs) to access business loans, subsidies, and government schemes more easily.
If you are planning to start or expand a business and want to know how to get a loan under the Udyog Aadhaar scheme, this guide provides every detail — from eligibility and benefits to official links for applying.
1. What is Udyog Aadhaar / Udyam Registration?
- Udyog Aadhaar was introduced in 2015 by the Ministry of MSME to simplify registration for small businesses.
- In 2020, it was upgraded and renamed as Udyam Registration.
- Businesses registered under this scheme get a unique Udyam Registration Number (URN), which acts as their official business identity.
- It is mandatory for businesses to register on the Udyam portal to avail benefits like business loans, priority lending, subsidies, and government tenders.
Benefits of Udyog Aadhaar Loan Scheme
Once you register your business under Udyam, you become eligible for a wide range of financial benefits.
- Easy Access to Business Loans – Banks and NBFCs provide collateral-free loans to Udyam-registered businesses.
- Government Subsidies – Special subsidies on technology, skill training, and machinery purchase.
- Lower Interest Rates – MSME loans often come with reduced interest compared to regular business loans.
- Collateral-Free Loans under CGTMSE – The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides loans without security.
- Priority Lending from Banks – RBI mandates all banks to prioritize lending to MSMEs.
- Protection Against Delayed Payments – Registered businesses get legal protection if buyers delay payments beyond 45 days.
- Access to International Trade Fairs – Subsidies are given for attending global exhibitions.
- Government Tenders – Special preference in public procurement and e-tenders.
3. Eligibility for Udyog Aadhaar Loan Scheme
Before applying for a loan, check if your business qualifies.
- Type of Business Eligible:
- Proprietorship
- Partnership Firm
- Private Limited Company
- Limited Liability Partnership (LLP)
- Co-operative Societies
- Hindu Undivided Family (HUF)
- MSME Classification (based on investment & turnover):
- Micro Enterprise – Investment ≤ ₹1 crore & Turnover ≤ ₹5 crore
- Small Enterprise – Investment ≤ ₹10 crore & Turnover ≤ ₹50 crore
- Medium Enterprise – Investment ≤ ₹50 crore & Turnover ≤ ₹250 crore
4. Loan Schemes Available for Udyam Registered Businesses
4.1. CGTMSE Loan (Credit Guarantee Fund)
- Collateral-free loans up to ₹2 crore.
- 75–85% credit guarantee by government.
4.2. Mudra Loan (PMMY)
- For micro units and women entrepreneurs.
- Three categories:
- Shishu (up to ₹50,000)
- Kishore (₹50,000–₹5 lakh)
- Tarun (₹5–₹10 lakh)
4.3. Stand-Up India Loan
- For women entrepreneurs and SC/ST business owners.
- Loan amount: ₹10 lakh to ₹1 crore.
4.4. PMEGP (Prime Minister’s Employment Generation Programme)
- Subsidy for manufacturing & service sector businesses.
- Loan up to ₹25 lakh (manufacturing) and ₹10 lakh (service).
4.5. SIDBI MSME Loans
- Special schemes for startups and MSMEs.
5. Documents Required for Loan Application
- Udyam Registration Certificate
- Aadhaar Card of applicant
- PAN Card of business/owner
- Bank Statement (last 6–12 months)
- Income Tax Return (if applicable)
- Business Plan / Project Report
- Address proof of business
- GST registration (if applicable)
- Previous loan details (if any)
6. Step-by-Step Process to Get Loan
Step 1: Register on Udyam Portal
- Visit: Udyam Registration Portal
- Enter Aadhaar number, PAN, and business details.
- Get the Udyam Registration Number (URN).
Step 2: Prepare Loan Application
- Choose the type of loan (Working Capital, Term Loan, Mudra Loan, CGTMSE, etc.).
- Create a simple business plan showing how you will use the loan.
Step 3: Approach Bank or NBFC
- Visit your nearest branch of SBI, Canara Bank, Bank of Baroda, Punjab National Bank, or cooperative banks.
- Submit application with Udyam Registration Certificate.
Step 4: Verification by Bank
- Bank checks business turnover, repayment capacity, and Udyam details.
- Sometimes collateral is waived due to government guarantee.
Step 5: Loan Approval & Disbursement
- If eligible, loan is sanctioned and credited to your bank account.
- Subsidies and interest benefits are automatically linked to your Udyam registration.
7. How to Check Loan Status
- Log in to your bank’s net banking portal.
- Visit MSME loan tracking system if provided.
- Track via Udyam portal if linked.
- Contact bank branch directly.
8. State-Wise Loan Support for Udyam
Telangana & Andhra Pradesh:
- TS-iPASS & AP MSME Development Corporation offer additional subsidies.
- Subsidies on machinery, electricity, and tax benefits for Udyam registered businesses.
Karnataka, Tamil Nadu, Maharashtra, Gujarat:
- State industries departments provide additional capital subsidy, electricity concession, and stamp duty exemption.
9. Official Links for Udyog Aadhaar / Udyam Loan
| Purpose | Official Link |
|---|---|
| Udyam Registration | https://udyamregistration.gov.in |
| MSME Loan Schemes | https://msme.gov.in |
| Mudra Loan | https://mudra.org.in |
| Stand-Up India Loan | https://www.standupmitra.in |
| PMEGP Loan | https://www.kviconline.gov.in/pmegpeportal |
| CGTMSE Loan | https://www.cgtmse.in |
10. Tips for Getting Loan Easily
- Maintain a good CIBIL credit score.
- Keep bank statements updated and show regular transactions.
- Apply with a clear business plan.
- Prefer nationalized banks as they follow government subsidy schemes strictly.
- Women entrepreneurs can highlight gender-based loan benefits for faster approval.
Click Hear
The Udyog Aadhaar scheme (Udyam Registration) is a powerful tool for small entrepreneurs to get loans and grow their businesses. With this registration, you can access Mudra Loans, CGTMSE collateral-free loans, Stand-Up India schemes, and PMEGP subsidies. The process is simple — register on the official Udyam portal, apply through your bank, and avail the benefits of government-backed credit support.
By using these schemes, women entrepreneurs, small manufacturers, service providers, and startups can build a strong foundation for sustainable business growth in India.